Monday, November 1, 2010

BUY MGH - $1.20 and GPRLF - $1.23 SOLD TZA - $22.71

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A month ago I purchased shares of Minco Gold Corp (MGH) which, like gold for the past month, went nowhere but a tad lower.  I think today I got this one right with the indicators so I doubled my position.  


Click on the charts to ENLARGE


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I have been way under weighted in silver for the longest time, other than the occasional buy/sell of the 2X ETF (AGQ).  So I went shopping and found this incredibly promising technical setup of Great Panther Silver (GPRLF).






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I ditched my small position in Direxion Small Bear 3X ETF (TZA) early this afternoon for a very small gain.  I just had to admit to myself that I don't have the time or the opportunity right now to watch this kind of a position and trade it for optimization.  TZA did continue higher after my sale and fwiw, it looks like a good position to hold for tomorrow.  Oh well, no big deal.  It's much more important that I now focus on getting my portfolio ready for what gold and silver are about to do.
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My TSI Trading record has been updated.

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8 comments:

  1. AnonymousNovember 1, 2010 at 4:58 PM

    Hi,
    For a few days ago, i read your posts and i have a question if you permit me.

    In this post (TZA chart more precisely) you say you are expecting a correction in markets. How do you expect this will affect Gold an Silver ? A big correction also ?

    Thanks for your attention to my question.

    ReplyDelete
  2. JakeNovember 1, 2010 at 5:13 PM

    Hi John, Minco and Great Panther both look good- they both have analysts rating them "strong buys"! Are you concerned by crosshair's drop today? Thanks.

    ReplyDelete
  3. John TownsendNovember 1, 2010 at 7:45 PM

    Anon - I intend to hold my mining positions right through any stock market correction as I presently expect it to be shallow and not last long. The stock market does not affect Gold and Silver per se. The US Dollar does have a bit more sway, but the precious metals do indeed have a mind of their own. If the FED comes out with an aggressive policy to print more money, gold and silver will shoot higher in the blink of an eye.

    We are really held hostage at the moment, not knowing how much manipulation of the free marketplace the FED will impose on all participants.

    Jake - I did not know about the "strong buys" on either mining stock so thank you for that bit of supportive information.

    I watched Crosshair all day, as best I could. Without having a true understanding of the facts and implications of today's announcement I am, of course, completely in the dark.

    I just have to go with what my gut tells me and that this is emotional overreaction. CXZ closed at .75X Book Value today, has no debt. Market cap is $25M and I read they want to do a share dilution to raise up to C$10M. The market generally hates these kinds of surprises and the share dilution issue causes panic. Another thing I find interesting is the number of days of huge (green volume candles) buying before this announcement.

    So there are those who know more of the facts and those who are panicking. Me? I am neither. Sometimes these things turn around quickly as those who know come in like vultures to get the spoils. We'll just have to wait and see.

    My inclination would be to put in a limit order for my purchase price and if in the near term it gets hit, I'd probably just say c'ya.

    ReplyDelete
  4. AnonymousNovember 2, 2010 at 1:06 AM

    Hi John,

    A last question please (i am the anonymous). If Gold go below 1315$, the scenario of the uptrend for gold and silver in this present november will be "shut-down" or will take a little more longer time ?

    I have a AGQ position but at a high price (107). I bought with the expect fo the november scenario. I would be pleased with your opinion of this position.

    Thanks.

    ReplyDelete
  5. John TownsendNovember 2, 2010 at 5:47 AM

    Anon -- if gold goes below $1315 then I would imagine it will continue lower to support at $1265. It should find support there and then begin to rise again.

    My opinion of your position in AGQ at $107 is that you are going to be very happy when you see it at $160+ in four weeks, to be honest. And this is, ask you asked, my opinion. I do not have a crystal ball that works, unfortunately, so no promises. But $160+ is what I expect.

    ReplyDelete
  6. AnonymousNovember 2, 2010 at 6:35 AM

    Thanks John for your opinion.

    ReplyDelete
  7. AnthonyNovember 2, 2010 at 1:26 PM

    Hey John,
    Nice Call on MGH. I sure how you got some of the 16% increase today.

    ReplyDelete
  8. John TownsendNovember 2, 2010 at 3:54 PM

    Thanks Anthony. Every once in a while I get lucky. The TSI gets the credit however, not I.

    ReplyDelete

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